Sterling Infrastructure STRL shares soared 3.9% in the last trading session to close at $109.10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.1% loss over the past four weeks.
Sterling shares have been gaining on the optimism surrounding the company's strategic focus on high-margin services, booming E-Infrastructure business, and solid federal infrastructure funding ensuring long-term stability.
This civil construction company is expected to post quarterly earnings of $1.58 per share in its upcoming report, which represents a year-over-year change of +58%. Revenues are expected to be $415.6 million, down 5.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Sterling Infrastructure, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on STRL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sterling Infrastructure belongs to the Zacks Engineering - R and D Services industry. Another stock from the same industry, M-tron Industries, Inc. (MPTI), closed the last trading session 5.3% higher at $42.46. Over the past month, MPTI has returned -9.8%.
For M-tron Industries, Inc.
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Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report M-tron Industries, Inc. (MPTI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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